Jan 27, 2011, 16:40 GMT

http://www.monstersandcritics.com/news/europe/news/article_1615121.php/EU-Two-German-regions-don-t-do-enough-against-money-laundering

Brussels - Two of Germany's eastern states are not doing enough to guard against money laundering, the European Union's executive found on Thursday.

An EU law from 2005 obliges lawyers, real estate agents, and casinos to check on their customers' identities and to report suspicious transactions to authorities.

But the European Commission said state governments in Mecklenburg- West Pomerania and Saxony Anhalt have not set up the necessary watchdogs to ensure compliance with that legislation.

'There are deficiencies with regard to real estate agents, insurance intermediaries and providers of goods, when payments are made in cash in excess of 15,000 euros (20,600 dollars),' it said in a statement.

The EU executive therefore decided to give the German authorities two months to provide assurances that the situation will be fixed.

Failing that, the commission could take the German government before the European Court of Justice, where it could eventually be forced to pay a hefty fine.